By Lordson Okpetu
The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Dr Maikanti Baru, has given his consent to the unbundling of the national oil corporation that he heads into three entities as enshrined in the draft copy of the Petroleum Industry Bill (PIB).
Baru made this known at a Public Hearing on the Petroleum Industry Governance Bill (PIGB) on Wednesday in Abuja.
The entities that will emerge from NNPC unbundling are the Nigerian Petroleum Regulatory Commission (NPRC) – a regulatory entity for the entire petroleum industry (upstream, midstream and downstream); the Nigerian Petroleum Assets Management Company (NPAMC) – a counterpart and administrator of production sharing agreements.
The creation of a third entity, the Nigerian Petroleum Company (NPC), is also being considered as a vertically integrated oil and gas company operating as a fully commercial entity across the value chain.
“The NNPC supports the creation of the Nigerian Petroleum Regulatory Commission (NPRC), the Nigerian Petroleum Assets Management Company (NPAMC) and the Nigerian Petroleum Company (NPC),” said Baru.
He said that the creation of these entities would create and ensure transparency in the petroleum sector.
He commended the Senate for the enormous work it had put in the development of the Bill.
The NNPC GMD noted that to enhance transparency in the proposed Nigeria Petroleum Company, which is being mulled as the successor company of the NNPC, it should be mandated to publish annually a detailed report on all petroleum revenue payments made to government.
“This should include all royalties, rentals, fees, Petroleum Profit tax, corporate income tax, other taxes, bonuses, profit oil/gas shares from each of the licences, leases and contracts.’’ Baru said.